Required Provisions in Major Subcontracts Sample Clauses

Required Provisions in Major Subcontracts. Contractor shall cause each Major Subcontract and each supply agreement with a Subcontractor for Major Equipment to be assignable by Contractor to Owner and the Facility Lenders (as collateral security or absolutely) without the prior consent of such Subcontractor, in accordance with this Section 2.6(d). Each such Major Subcontract and supply agreement shall provide that, upon notification to the Subcontractor from Owner that, (a) this Agreement has been terminated and (b) Owner or a designee thereof will thereafter be assuming Contractor’s future rights and obligations under such Major Subcontract or supply agreement, then such Subcontractor shall continue to perform all of its obligations under such Major Subcontract or supply agreement for the benefit of Owner or the Facility Lenders and shall recognize Owner or the Facility Lenders as being vested with all of the future rights and obligations of Contractor under such Major Subcontract or supply agreement; provided that Contractor shall maintain all rights and claims against each Subcontractor for the portion of Work previously performed. Notwithstanding the foregoing, it is specifically understood and agreed (and each Subcontractor shall so acknowledge in its subcontract) that no Subcontractor shall have any right to look to Owner or the Facility Lenders for the performance of Contractor’s obligations under any subcontract unless and until such Subcontractor has received notification that its subcontract has been transferred to Owner or such designee and then only with respect to future obligations under such subcontract.